Online gaming company Zynga filed for an initial public offering on Friday (July 1) following days of expectations the company was preparing a bid to sell its shares on the public market.
The company's S-1 filing puts the estimated amount to be raised at $1 billion. It plans to use the money primarily for "general corporate purposes, including working capital, game development, marketing activities and capital expenditures."
Here are some key stats listed in the filing:
- Revenue of $597 million in 2010, $121 million in 2009 and $19 million in 2008. Revenue in the first quarter of 2011 was $235 million.
- Net income of $91 million in 2010 and net losses of $53 million in 2009 and $22 million in 2008. Net income in the first quarter of 2011 was $12 million.
- Bookings, which is the gross revenue before Facebook's cut is deducted, totaled $838 million in 2010, $328 million in 2009 and $36 million in 2008. This is the main top-line metric the company uses to manage its business. As the company explained, in July 2010 it began migrating to Facebook Credits as the primary payment method for its games and finished the migration in April. "Facebook remits to us an amount equal to 70% of the face value of Facebook Credits purchased by our players for use in our games. We record bookings and recognize revenue net of the amounts retained by Facebook."
- 60 million daily active users who play a total of 2 billion minutes per day
- 232 million monthly active users
- Zynga players come from 166 countries
- 38,000 virtual items are created every second
- Since the first quarter of 2009, two or three games have generated the "majority" of Zynga's income in any given quarter. In addition, "substantially all" the company's revenue is derived from "a small percentage of players."
Zynga was founded in 2007. Its games can be played free of charge and the company generates revenue from the sale of virtual goods and advertising. It has branched out into music on a number of occasions. It partnered with Lady Gaga to create the "GagaVille" around the launch of her "Born This Way" album in April. Last year Dr. Dre became the first artist to distribute content and branded virtual goods within the same game. And Snoop Dogg participated in some offline marketing activities for the release of Zynga's "Mafia Wars" game.
The company's music ties extend to its executive ranks, too. Owen Van Natta, the former CEO of MySpace and Project Playlist, was hired as Zynga's Executive Vice President and Chief Business Officer earlier this year.